NEW YORK (TheStreet) --Biotech mergers and improving home sales heated up U.S. markets Monday. But Chinese Internet stocks were left out in the cold.
The S&P 500, Dow and Nasdaq were all in the green after big pharma kicked off merger Monday with two major offers. Pfizer (PFE) confirmed early this morning that it renewed its $100 billion bid for AstraZeneca late last week. A few hours later, Forest Labs (FRX) announced plans to buy Furiex Pharmaceuticals (FURX) for as much as $1.5 billion. Both offers were a significant premium over Friday's closing price, giving investors reason to believe that biotech valuations are not bubbly, as many argued last month.
Home sales data, released at ten, also gave investors reasons to be bullish. The National Association of Realtors said that contracts to buy pre-owned homes rose 3.4% in March -- the first gain in nine months. The growth topped economists' calls for a 1% rise. Housing data is considered a bellwether for broader economic growth since many Americans' net worth is tied to the value of their homes.
$SPY Lots of bullish news today, other than Russia sanctions. Will be interesting to see if market holds onto gains. it better.